Creating Supplier Tax Certificate

Background

The functionality for Supplier Tax Certificate is requested to support the Indian requirement for Tax Deduction at Source (TDS), also call Supplier or Withheld Tax, but the same request exists also in several other countries.

The Net Change article #5023 describes the functionality introduced in 2012 as part of the Indian requirement.

Withholding tax using standard or flexible service codes

The process for supplier tax certificate depends on the setting of the parameter 260 ‘Withholding tax using flexible service codes’ in (APS905/F) and with that the options allowed in the function (APS470).

Workflow when standard service codes in (CRS063) are used (parameter 260 not selected)

Supplier tax using standard service codes in (CRS063) for calculation of withholding tax is used in most countries. See Reporting Supplier Tax for a detailed description. The withholding tax transactions are created at the time of invoice or payment entry but no certificate number is assigned.

• Create a proposal header containing the selection and general information such as company name and address.
• Select the proposal with option 9 in order to create the certificate number. A certificate number is assigned to all withholding tax transactions within the selection for the same payee and service code and the certificate status set to 1-Created.
• When the certificate number has been created, select the proposal with option 6 in order to print the certificate document. A certificate date is set on all withholding tax transactions within the selection and the certificate status set to 9-Printed.
• The option 8 gives the possibility to print a copy of the certificate document. A new printout of the certificate document within the selection is created with the description "//COPY//" included in the certificate header.

The option 6-Print certificate, 8-Print certificate copy and 9-Create certificate number can all be used for the same proposal (process as described above) or by creating different proposals for example to handle certificate numbering per period/month and certificate printout per quarter or year.

Workflow when flexible service codes in (CRS663) are used (parameter 260 selected)

Supplier tax using flexible service codes in (CRS663) for calculation of withholding tax is e.g. used in Argentina (see document ‘Withholding Supplier Tax Using Flexible Service Codes’ for a detail description). The certificate number is then assigned to the withholding tax transaction at the same time the transaction is created in (APS425).

• Create a proposal header containing the selection and general information such as company name and address.
• Select the proposal with option 6 in order to print the certificate document. A certificate date is set on all withholding tax transactions within the selection and the certificate status set to 9-Printed.
• The option 8 gives the possibility to print a copy of the certificate document. A new printout of the certificate document within the selection is created with the description "//COPY//" included in the certificate header.

The option 6-Print certificate and 8-Print certificate copy can both be used for the same proposal (process as described above) or by creating different proposals.

Follow These Steps

1. Create a new proposal in (APS470). In the panel (APS470/E) you must enter the proposal name and add a selection for the withholding tax transactions to be included. You can also change the company name and address information proposed if requested.

   The following information in (APS470/E) can be printed on the certificate document:

   • Accounting date – From/To

     The information is mandatory to enter and is printed under the section ‘Period From / To’ in the header of the certificate document.

   • Company name

     The information is optional to enter. If entered, the company name is printed in the header of the certificate document.

   • Company address – line 1-4

     The information is optional to enter. If entered, the company address is printed under the company name in the header of the certificate document.

   • VAT registration number

     The information is optional to enter. If entered, the VAT registration number is printed in the header of the certificate document.

   • Tax ID number company

     The information is optional to enter. If entered, the TAX ID number company is printed in the header of the certificate document.

   • Responsible

     The information is optional to enter. If entered, a section for ‘Signature’ is printed on the last page of the certificate document. The name of the responsible user is then printed under this section.

     The following information can be printed in addition if an user ID for ‘Responsible’ has been selected:

     • Role of responsibility

       The information is optional to enter. If entered, the description is printed under the name of the responsible person.

     • City

       The information is optional to enter. If entered, the city is printed together with the certificate date.

2. Select the proposal with option 9-Create certificate number to retrieve and assign a certificate number per payee and service code for the transactions included in the selection.

   • You can change the selection in (APS470/F) that was entered when the proposal was created if requested.

     The selection for ‘Account date – From/To’ is mandatory; all other selection fields are optional to enter.

   • Confirm the panel (APS470/F) to start the numbering.

     All withholding tax transactions according to the selection in (APS470/F) having (supplier tax report) status 1-Created or 9-Reported and certificate status 0-Not created in (APS425) are included.

     A certificate number is retrieved from the number series type 84 in (CRS165) using the number series according to the setting on the service code in (CRS063) and is assigned to all withholding tax transactions with the same payee and service code.

     When the certificate numbering is ready, the status for certificate number created is changed to 9-Created and the date set with current date in (APS470/B).

     If no transactions were found for the selection done, the status is instead set to 8-No records selected.

     All transactions included are updated with a certificate number and the certificate status set to 1-Created in (APS425/F).

   • You can control the result of the certificate numbering by displaying the withholding tax transactions in (APS425) or by printing a detail report in (APS555).

   Note that this step to create the certificate number is not valid when flexible service codes are used as the certificate number is assigned to the withheld tax transaction at the same time it is created.

3. Print the certificate documents by selecting the proposal with option 6-Print certificate.

   • If you have not run the certificate numbering for the proposal, the selection entered when the proposal was created can be changed in (APS470/G) if requested.

     You must enter a certificate date in (APS470/G) that is valid for the printout. This date is printed on the certificate document as well as assigned to the withholding tax transactions in (APS425).

   • You can change the company name and address information entered when the proposal was created in (APS470/H) if requested (see step 1 above for information about fields used for the certificate document).
   • Confirm the panel (APS470/H) to start the printing of the certificate document.

     All withholding tax transactions according to the selection above having (supplier tax report) status 1-Created or 9-Reported and certificate status 1-Created in (APS425) are included.

     When the certificate printout is ready, the status for certificate printed is changed to 9-Created and the date set with current date in (APS470/B).

     If no transactions were found for the selection done, the status is instead set to 8-No records selected.

     All transactions included are updated with the certificate date entered in (APS470/G) and the certificate status set to 9-Printed in (APS425/F).

     One certificate document of type detailed (APS472PF) is created per payee and certificate number.

   • You can control the result of the certificate numbering by displaying the withholding tax transactions in (APS425) or by printing a detail report in (APS555).

4. Print a copy of the certificate documents by selecting the proposal with option 8-Print certificate copy.

   • If you have not run the certificate numbering for the proposal, the selection entered when the proposal was created can be changed in (APS470/G) if requested.

     Additionally selection on certificate number or certificate date can be done. This in order to limit the certificate copies printed.

   • If you have not run the certificate printout for the proposal, the company name and address information entered when the proposal was created can be changed in (APS470/H) if requested (see step 1 above for information about fields used for the certificate document).
   • Confirm the panel (APS470/H) to start the printing a copy of the certificate document.

     All withholding tax transactions according to the selection above having (supplier tax report) status 1-Created or 9-Reported and certificate status 9-Printed in (APS425) are included.

     When the certificate printout is ready, the status for certificate copy printed is changed to 9-Created and the date set with current date in (APS470/B).

     If no transactions were found for the selection done, the status is instead set to 8-No records selected.

     One certificate document of type detailed (APS472PF) with the description "//COPY//" included in the certificate header is created per payee and certificate number.

Outcome

• Certificate number is assigned and certificate state is updated to the supplier tax transactions in (APS425).
• Certificate status and date are updated to the supplier tax transactions in (APS425) and certificate document (APS472PF) to be sent to the supplier is created.

Setup when Standard service codes (CRS063) are used

The below settings must be defined before the certificate numbering is done:

• Number series type 84 in (CRS165) must be defined with minimum one number series.
• Check box ‘Assign certificate’ in (CRS063/E) must be selected for the service codes for which a certificate number must be assigned.
• The certificate number series for the number series type 84 must be connected in (CRS063/E).

The below settings must be defined before the certificate printout is created:

• Language of the supplier entered in (CRS620/E).
• Date format and editing of the supplier entered in (CRS620/E).
• Supplier name and address line 1-4 for address type 01-Postal address entered in (CRS622/E).

The below fields are optional to entered, the information is proposed when a proposal is created in (APS470) but can be changed or added:

• Company name and address line 1-4 entered in (MNS100/E).
• VAT registration number entered in (MNS100/G).
• Tax ID number company entered in (APS035/E).
• A user ID selected for the ‘Responsible’ in (APS035/E) if a signature section with the name of the responsible person must be printed.
• A description for ‘Role of responsibility entered in (APS035/E) to be printed under the name of the responsible person.
• City of the company entered in (MNS100/E) if a signature section must be printed.

The below field is optional to enter but must be entered before the certificate printout is created:

• One of the alternative 1-5 selected for the drop-down list ‘Print amount’ in (APS035/E) if the withheld tax amount must be printed in text.

Setup when Flexible service codes (CRS663) are used

The below settings must be defined before the certificate printout is created:

• Language of the supplier entered in (CRS620/E).
• Date format and editing of the supplier entered in (CRS620/E).
• Supplier name and address line 1-4 for address type 01-Postal address entered in (CRS622/E).

The below fields are optional to entered, the information is proposed when a proposal is created in (APS470) but can be changed or added:

• Company name and address line 1-4 entered in (MNS100/E).
• VAT registration number entered in (MNS100/G).
• Tax ID number company entered in (APS035/E).
• A user ID selected for the ‘Responsible’ in (APS035/E) if a signature section with the name of the responsible person must be printed.
• A description for ‘Role of responsibility entered in (APS035/E) to be printed under the name of the responsible person.
• City of the company entered in (MNS100/E) if a signature section must be printed.

The below field is optional to enter but must be entered before the certificate printout is created:

• One of the alternative 1-5 selected for the drop-down list ‘Print amount’ in (APS035/E) if the withheld tax amount must be printed in text.

Settings Descriptions